Trading future options vs Trading futures

MattZ said:
Same goes for your opinion about equities. I am always interested in listening to others traders experience. Keeps an open mind, encourages flexibility in trading and creates a nice dialogue.

As for your question: my understanding that equity options are always consisting of 100 shares. In Futures, they are based on varying contract sizes (1000 barrels of oil, 100 0z of Gold, 5000 Bushels of what, etc.)
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Thanks Matt.
 
dextor said:
Well i'm seriously considering if futures is right for my account size.
I like the futures market better.... ;)
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Glad to see you are aware of how account size can be a factor. Thats a good sign. I moved from equities to futures for the leverage and I never looked back. Its been great.
 
Ah ..that means you have grew your account huge :)

Still, wouldn't it be easier to position size when trading e.g. SPY / QQQ, instead of NQ / ES ? Assuming that you are still trading index futures.

Traderjohnsblog said:
I moved from equities to futures for the leverage and I never looked back. Its been great.
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Yes because you scale up or down by individual shares in the equities or contracts of 100 shares in options. But in futures I can control 1000 bbls of oil for only a small amount of money. The problem with futures is that take more losses in the futures markets then I did equities. Its the leverage in the futures markets that make up for that and then some.
 
Very long term commodities including indexes, currencies and financials I have used options/stocks/ETFs/stock options to hedge futures since 1990s. I see zero reason to buy outright decaying entity other than hedging. If you can't afford futures then do spreading like @bone .
 
Side topic::
Sometimes I really envy you guys.

I have recently found a good trading set up and it's like a holy grail to me.

The problem was always with me having no guts to pull the trigger and my account size is too small to trade futures and when I am in the trade I don't get out when I'm supposed to...it's the fear of losing ....( did everything wrong in the book, yea i know, or maybe it's a timezone thing where i'm living on the equator, not thinking correctly. )

Now I really hate myself because my set up works....but i'm not getting the profits.
I was working out the figures, it would have been like 20k USD in just this month alone....

Maybe I should continue working and just do indexing instead of trading futures.

it seems that account size does affect one psychologically...

Traderjohnsblog said:
Yes because you scale up or down by individual shares in the equities or contracts of 100 shares in options. But in futures I can control 1000 bbls of oil for only a small amount of money. The problem with futures is that take more losses in the futures markets then I did equities. Its the leverage in the futures markets that make up for that and then some.
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In futures I average 5-15% winning trades based on yearly stats and do very well cause often times my risk is positive if I can hedge correctlly. But that does not mean it be winning trade as I judge winning trades to be minimal of $20k including rollovers. And my approach is worst if you have problems of depression.. I went down horrible road but paid off after several years. When you learn to hedge correctly, your risk is so small and drawdowns...reward is hundreds of percents, but I have waited up to 7 year for trade to work out, forces you to learn how to make money other ways in that market Eurodollars.
 
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